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Customs duty dropshipping

Newbie

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I started a business on shopify, and I maintain business in Japan, but my store targets Australia and my supplier is Chinese and I don't make a sale at all yet. 

In this case, do I have pay the customs duty to the Australian goverment and if I have to, where do I have to pay to? 

Any answers would be appreciated. 

Thank you. 

 

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ATO Community Support

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Hi @Lifeadventurer,

 

It is generally the responsibility of the importer (that is, whoever the recipient is of the consignment in Australia) of the goods that is responsible for the duties, charges, and taxes.

 

Customs duty charges and import processing charges are handled by Australian Border Force, so you'd need to talk to them regarding that aspect. They also are the ones who calculate and charge the GST on imported goods.

 

For GST on imported goods: where the consignment (that is, the order from a seller to you, even if it is sent in multiple packages) is valued at more than $1,000, GST will be calculated and charged at the border where the international seller/consigner is not required to be registered for GST. The GST will be payable before the consignment/s are released to Australia post for final delivery.

 

Where the value is less than $1,000, the consignment will be treated as a non-taxable importation (see Item 26).

3 REPLIES 3

Most helpful response

ATO Community Support

Replies 2

Hi @Lifeadventurer,

 

It is generally the responsibility of the importer (that is, whoever the recipient is of the consignment in Australia) of the goods that is responsible for the duties, charges, and taxes.

 

Customs duty charges and import processing charges are handled by Australian Border Force, so you'd need to talk to them regarding that aspect. They also are the ones who calculate and charge the GST on imported goods.

 

For GST on imported goods: where the consignment (that is, the order from a seller to you, even if it is sent in multiple packages) is valued at more than $1,000, GST will be calculated and charged at the border where the international seller/consigner is not required to be registered for GST. The GST will be payable before the consignment/s are released to Australia post for final delivery.

 

Where the value is less than $1,000, the consignment will be treated as a non-taxable importation (see Item 26).

Newbie

Replies 1

The value of the items I sell in my store is less than $1000. 

  • So in my case, I don't need to charge GST to my customers, and if the value is more than $1000, I have to charge it, but I have to talk Australian Boarder force. Is it all correct?

ATO Community Support

Replies 0

Hiya @Lifeadventurer,

 

There are two things you need to look at. One is GST on imports. Based on the information you've provided, I don't think this will apply. My understanding is the goods are going directly through to your consumers. Not coming into the country in a bulk lot. As long as each consignment is below $1000 this won't be something you need to worry about.

 

The other GST factor is whether you need to charge GST on your sales. If your turnover (from your business in Australia) is over $75,000 per year, you need to register for GST and lodge activity statements. There is information on our website about GST for non-resident entities.